Section 2: Exemption from VAT and tax refunds

§ 6b Regulation regarding consignment stock

(1) Taxation shall apply based on the following regulation with regard to the transportation and dispatch of goods from a Member State into the territory of another Member State for the purpose of their being supplied to a purchaser after the transportation and dispatch is terminated, where the following preconditions are satisfied:

1. The taxable person or a third party engaged by the taxable person transports or dispatches goods forming part of his business assets from the territory of one Member State (Member State of dispatch) to the territory of another Member State (Member State of arrival) with the purpose that, after the termination of this transportation or dispatch, the supply (§ 3 paragraph 1) shall be carried out based on an existing agreement to a purchaser of which the complete name and address are known to the taxable person at the point in time when the transportation or dispatch of the goods begins and that the goods will remain in the Member State of arrival.

2. The taxable person has, in the Member State of arrival, neither his seat, management nor a fixed establishment or in the case of the absence of a seat, management or fixed establishment, neither his permanent address nor usual place of residence

3. The purchaser, within the meaning of paragraph 1, to whom the supply shall be carried out has used, vis-à-vis the taxable person, his VAT identification number issued by the Member State of arrival at the point in time when the transportation or dispatch begins.

4. The taxable person separately records, in accordance with § 22 paragraph 4f, the transportation or dispatch of the goods within the meaning of number 1 and complies with his obligations according to § 18a paragraph 1 in connection with paragraph 6 number 2 and paragraph 7 number 2a in due time, correctly and completely.

(2) If the preconditions mentioned in paragraph 1 are fulfilled, the following shall apply at the point in time when the goods are supplied to the purchaser, provided that this supply is carried out within the deadline referred to in paragraph 3:

1. The supply to the purchaser shall be deemed as an intra-Community supply taxable in the Member State of dispatch but VAT exempt (§ 6a).

2. The supply to the purchaser shall be deemed as an intra-Community acquisition taxable in the Member State of arrival (§ 1a paragraph 1).

(3) If the supply to the purchaser is not carried out twelve months after the termination or dispatch of the goods, within the meaning of paragraph 1 number 1, and if none of the preconditions mentioned in paragraph 6 are fulfilled, a transfer of own goods deemed as equivalent to an intra-Community supply (§ 6a paragraph 2 in connection with § 3 paragraph 3a) shall be deemed to take place on the day following the expiry of the 12-month period.

(4) Paragraph 3 shall not apply, if the following conditions are satisfied:

1. The supply, intended to be made in accordance with paragraph 1 number 1, is not carried out and the goods are returned from the Member State of arrival to the Member State of dispatch within twelve months after the termination of the transportation or dispatch.

2. The taxable person separately records the return of the goods in accordance with § 22 paragraph 4f.

(5) Where, within twelve months of the termination of the transportation or dispatch of the goods, within the meaning of paragraph 1 number 1, and before the point in time of the supply, the purchaser, within the meaning of paragraph 1 number 1, is substituted by another taxable person, paragraph 4 shall apply accordingly from the point in time when the purchaser is substituted by the other taxable person, provided that the following conditions are satisfied:

1. The other taxable person has used, vis-à-vis the supplier, the VAT identification number issued by the Member State of arrival.

2. The complete name and full address of the other taxable person are known to the supplier.

3. The supplier separately records the substitution of the purchaser in accordance with § 22 paragraph 4f.

(6) Where any of the conditions set out in paragraph 1 to 5 cease to be fulfilled within the time limit of twelve months after the termination of the transportation or dispatch of the goods within the meaning of paragraph 1 number 1 and before the date of supply, a transfer of own goods deemed as being equivalent to an intra-Community supply (§ 6a paragraph 2 in connection with § 3 paragraph 3a) shall be deemed to take place on the day on which the conditions cease to be fulfilled. If the goods are supplied to a purchaser other than the purchaser referred to in paragraph 1 number 1 or paragraph 5, the conditions set out in paragraph 1 to 5 shall be deemed to cease to be fulfilled on the day before such supply. Sentence 2 shall apply accordingly if, before the supply, the goods are transported or dispatched to another Member State as the Member State of dispatch or a third country territory. In the event of the destruction, loss or theft of the goods after the termination of the transportation or dispatch of the goods, within the meaning of paragraph 1 number 1, and before the date of supply, it shall be deemed that the conditions set out in paragraphs 1 to 5 cease to be fulfilled on the day on which the destruction, loss or theft was detected.